TOKYO: Tokyo stocks rose 0.83 percent Tuesday, on the back of a Wall Street rally driven by upbeat US factory output data ahead of a key Federal Reserve policy meeting.
The benchmark Nikkei 225 index added 125.72 points to 15,278.63, while the Topix index of all first-section shares was 0.77 percent, or 9.36 points, higher at 1,232.31.
US industrial output jumped 1.1 percent in November, the Federal Reserve reported, while manufacturing activity saw a fourth consecutive monthly gain.
That helped push the Dow Jones Industrial Average up 0.82 percent to close at 15,884.57.
The strong industrial output report came ahead of a two-day meeting of the Fed's monetary policy committee, where it will decide whether or not to begin reducing its $85 billion a month stimulus programme.
"There isn't much vigour in the market," said Hiroichi Nishi, general manager of equity at SMBC Nikko Securities.
"Investors remain somewhat cautious ahead of the meeting outcome," he told Dow Jones Newswires.
Defence-related firms got a boost as Tokyo said it intends to raise military spending by five percent over the next five years, with a hardware splurge intended to beef up defence of far-flung territories amid a corrosive row with China.
Mitsubishi Heavy shares gained 0.48 percent to 621 yen, shipbuilder Kawasaki Heavy added 1.95 percent to 418 yen and Nippon Steel & Sumitomo Metal was up 1.22 percent to close at 330 yen.
Sony slipped 1.05 percent to 1,775 yen while Toyota shares gained 0.66 percent to 6,100 yen.
In currency trading, the dollar fetched 103.00 yen, against 103.02 yen in New York Monday. (AFP)